Checkmark iconCan I Write This Off?

Can I write off content creation tools?

TL;DR

Content creation tools can be deductible if they are ordinary and necessary expenses for your business or profession.

Detailed Answer

If you are a freelancer, small business owner, or work in a profession where content creation is a part of your business operations, you can deduct the cost of content creation tools as a business expense. These tools must be directly related to your trade or business and not for personal use. For example, a photographer can deduct the cost of photo editing software, while a social media manager can deduct the cost of a social media scheduling tool. However, if these tools are used for personal purposes, the deduction must be prorated based on the percentage of business use.

Where to Put It on the Tax Form

Schedule C (Form 1040), Part II, Line 18 (Office expenses) or Line 27a (Other expenses)

Real World Example

A freelance graphic designer purchases a subscription to Adobe Creative Cloud for $600 per year. Since this software is used exclusively for business purposes, the entire cost can be deducted as a business expense on their Schedule C.

Calculation Required

A calculation is required for this deduction.

If the tool is used for both personal and business purposes, calculate the percentage of time or use that is business-related and apply that percentage to the total cost to determine the deductible amount.

Audit Risk & Documentation Tips

Keep detailed records of the purchase, including receipts and invoices. Maintain documentation showing how the tool is used in your business, such as project files, client communications, or time logs. Be prepared to demonstrate the business necessity of the tool if audited.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

FreelancersSmall BusinessPhotographersContent CreatorsSocial Media Managers

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

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